Each day thousands of counterfeit products come through our nation’s borders and ports of entry. Given the sheer volume of fraudulent and potentially harmful products and the alarming sophistication of counterfeiters and pirates, it is often difficult to tell the real from the fake. When counterfeit goods successfully enter the U.S., American workers who design and make the legitimate goods lose.

“Right now, CBP officers are on the front lines of trade enforcement, but they are not allowed to share information with the people most knowledgeable about the authenticity of their products—the right holders, “said Rep. Poe. “Instead, they are faced with the nearly impossible task of inspecting all of the counterfeit and potentially dangerous goods to determine what is genuine and what is counterfeit. We are setting them up for failure. This broken system is hurting American designers and manufacturers.”

“CBP should have the authority to share information on suspected counterfeit physical products,” said Rep. Lofgren. “Without that authority, consumers and companies can receive physical goods they never intended to purchase, which can have harmful results when the products affect public safety and health. This bill makes it clear that the new CBP authority is directed towards physical goods where counterfeits can harm consumers.”

Background

For many years, CBP routinely sought the assistance of trademark and copyright owners to authenticate suspected counterfeit or pirated products detained at the border. Unfortunately, after a questionable legal interpretation of the Trade Secrets Act, CBP directed field staff in 2008 to redact all identifying markings and codes before sending a digital image to the right holder to authenticate the product.

The Foreign Counterfeit Merchandise Prevention Act provides a permanent remedy to this serious enforcement deficiency by clarifying that it is not a violation of the Trade Secrets Act for CBP officers to provide information and samples, including bar codes and identifying marks, to the right holder. It also allows for the sharing of information with rights holders who are harmed by detained circumvention devices. This legislation assures that CBP can continue to seek useful input from right holders to interdict dangerous counterfeit products before they enter the U.S. market. Likewise, the information sharing authorized by the bill ensures that genuine goods held for examination by CBP will be promptly identified as such, so that legitimate shipments will not be unnecessarily delayed from reaching the consumer markets in the U.S.

Semiconductor Industry Association

“The Semiconductor Industry Association appreciates Representative Poe and Representative Lofgren’s leadership in introducing this bill that would significantly enhance the U.S. government’s efforts to stop dangerous counterfeits from coming into the United States”

International Anti-Counterfeiting Organization

“INTA supports the expeditious consideration of legislation that provides CBP with the tools and clear directive it needs to work with rights-holder to identify potentially dangerous counterfeit and pirated products, before they enter the U.S. market.”